SEC Mulls Bitcoin Swaps for Stock Shares: Crypto Goes Legit?
Published Date: 5/19/2025
Notice
Summary
The SEC is reviewing a Nasdaq proposal to change how shares of the iShares Bitcoin Trust are created and redeemed, allowing in-kind transactions instead of just cash. This affects investors and the Trust by potentially making trading smoother and more efficient. The SEC will decide by May 13, 2025, which could impact how easily people buy or sell these Bitcoin-related shares.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Allow In‑Kind Creations for Bitcoin Trust
If you hold or trade shares of the iShares Bitcoin Trust, Nasdaq filed on January 24, 2025 a proposal to allow in‑kind creations and redemptions of the Trust's bitcoin under Nasdaq Rule 5711(d) as an alternative to cash. The SEC instituted proceedings and will decide whether to approve or disapprove the proposal by May 13, 2025, and it is inviting public comments by June 9, 2025 (rebuttals by June 23, 2025). The Exchange says the in‑kind option could make trading of the Trust's shares smoother and more efficient.
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